Hong Kong to see 10pc rise in office rents over next five years

Hong Kong will see a 10 per cent increase in prime office rents in the next five years at a rate below the average of other global cities, according to international property consultant Knight Frank.

In a contrast, Singapore is expected to see strong rental growth as the country is seen as a strategic base for global companies to expand into Southeast Asia.

Singapore, which suffered from a 29.1 per cent decline in office rents in the previous five-year cycle, is expected to see a 25 per cent increase in the coming cycle.

“Singapore is increasingly viewed as a strategic launch pad for more global companies to expand into Southeast Asian markets. So its prospects for the office market are positive, in light of anticipated healthy demand from companies looking to set up business or expanding there,” said David Ji, Director, Head of Research & Consultancy at Knight Frank, Greater China.

The fairly modest supply of new prime grade office space over the next few years would sustain prime office rental growth in the Southeast Asian nation, said Ji.

However, Hong Kong office rent is already among the highest in the world .